Mobikwik is shifting focus to payment gateway biz

Zaakpay, the MobiKwik-promoted payment gateway aggregator, is being hived off as a wholly-owned subsidiary of One MobiKwik Systems, which owns MobiKwik wallet but with a separate business head and a dedicated engineering team.Pratik Bhakta | ET Bureau | May 13, 2017, 10:11 IST

As the pure play wallet business faces threat from Unified Payments Interface and the government promoted BHIM, MobiKwik, one of the country's largest mobile wallets, is shifting focus to the payment gateway space where digital payments originating across various online platforms can flow through them.

Zaakpay, the MobiKwik-promoted payment gateway aggregator, is being hived off as a wholly-owned subsidiary of One MobiKwik Systems, which owns MobiKwik wallet but with a separate business head and a dedicated engineering team.

“We had launched Zaakpay way back but then there was too much of pricing pressure in the market, now with the consolidation happening in this space, we are going full throttle on expanding the Zaakpay business,“ said Bipin Preet Singh, chief executive officer of MobiKwik. “It has been a profitable business for us as well.“

A payment gateway makes money for every digital transaction which flows through its network as the cost of the transaction is usually shared between the bank and the gateway company.

With surge in digital transactions, the payment gateway space has also seen few major consolidations over the past year, with Citrus Pay getting acquired by PayU, Ingenico acquiring TechProcess, and CCAvenue getting merged with Infibeam.

This has given opportunity to MobiKwik to target large enterprise clients and offer them a better payment checkout experience.

“We have a more than 90% success rate on card payments through our gateway, which has been one of the biggest positive points of our business and we have been able to achieve it through deep level integration with card network Visa,“ said Singh.